As part of its charter, the Public Company Accounting Oversight Board (PCAOB) has the authority to inspect and review the workpapers of all accounting firms that provide auditing services to publicly-traded companies. The PCAOB summarizes their findings in publicly-available inspection reports...

We examine the association between Public Company Accounting Oversight Board (PCAOB) inspection reports and a firm's cost of equity capital, measured using seasoned equity offering (SEO) discounting. SEO discounting occurs when the offer price is lower than the prior day's market price of the...

On April 11, 2017, the Securities and Exchange Commission (SEC) announced charges against KPMG LLP – arising from their participation in a scheme to misappropriate and use confidential information relating to the Public Company Accounting Oversight Board's (PCAOB) planned inspections of KPMG....

On Sunday, February 26, 2017, PricewaterhouseCoopers (PwC) erred on live television when Brian Cullinan, PwC's U.S. Board Chairman and Managing Partner of PwC's Southwest region, handed to the announcers the wrong envelope for Best Picture at the 2017 Academy of Motion Picture Arts and Sciences...

After a lengthy and protracted debate, the Public Company Accounting Oversight Board (PCAOB) adopted new rules and related amendments to its auditing standards regarding the engagement partner and other accounting firms that took part in the audit (PCAOB 2015). The rules require disclosure of...

In response to Section 102(d) of the Sarbanes-Oxley Act, PCAOB Rule 2200 required annual reporting from all registered accounting firms via PCAOB Form 2. Filed for the first time during the second quarter of 2010, PCAOB Form 2 provides information about (1) each accounting firm's available human...

After a lengthy and protracted debate, the Public Company Accounting Oversight Board (PCAOB) adopted Rule 3211 (commonly referred to as “Form AP”) and related amendments to its auditing standards regarding the identification of audit engagement partner and other accounting firms who take...

PCAOB AS 3101 requires the auditor to communicate any critical audit matters (CAMs), identified during the planning or performance of the audit, in the audit report. Prior research has investigated the informativeness of CAM disclosures using short window, event study methodologies centered...